Predicting trends during volatile economic times in American is no easy task. However, I have pulled the crystal ball out of the attic and have found some information and may have some ideas for 2013! We strongly believe these are the four real estate items we should keep an eye on in 2013:
The housing market has turned the corner and there is no reason to believe that buyer demand will not maintain momentum nationally throughout 2013. Household formations shot up to boom-time levels in 2012 and are projected to increase at an even faster rate over the next 12 months.
A lack of inventory will be more of a challenge to sales increases than will a lack of demand. As usual, Summit County tends to lag behind the national economy by about 18-24 months, and things have been looking more stable here, as well.
Contrary to what many have hypothesized over the last few years, young adults (18-35 year olds) are just as committed to homeownership as previous generations. Recent studies have shown:
• 43 percent already own a home
• 72 percent see homeownership as part of their personal American Dream
• 93 percent of those currently renting plan to buy a home
This, along with the increase in household formations mentioned above, makes us believe that 2013 will be the year that many of these young adults will jump into homeownership.
Pricing of any item is determined by supply and demand. Demand for housing will remain strong throughout 2013. At the same time, the supply of homes ready for sale is shrinking in many parts of the country. Outside of a few states that still have challenges with large inventories of distressed properties (New York, New Jersey, Connecticut, Illinois for example), prices will appreciate nicely.
Even in the areas that are still dealing with high percentages of foreclosures and short sales, prices will not tumble dramatically. The increase in demand will absorb much of this inventory. In these areas, prices will either flatten or perhaps soften to a small degree.
Perhaps what many will find as the biggest surprise of 2013 will be the return of the 'move-up' seller. Over the last several years negative equity has prevented many of these sellers from moving up to the house of their dreams. However, with prices recovering, more and more of these sellers will realize that now may be their greatest opportunity to make the move to a lifestyle they always wanted.
With home prices expected to increase and more stringent mortgage qualifications (QR and QRM) scheduled to be announced this year, we believe that the first half of the year will bring many of these sellers/buyers to the market. Copyright KCM crew.
For answers to your real estate questions, call Allison Simson at (970) 468-6800. Email Info@SummitRealEstate.com. Allison's philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours. Want to know the value of your Summit County property? Visit www.SummitHomeValue.com.